News Headlines Article

Generic Drugs Leave Rite Aid Feeling Sick
San Francisco Chronicle

Generic drugs are good for consumers’ wallets, but they aren’t good for many other players in the medical industry. Pharmaceutical companies that spend billions of dollars to develop brand name drugs feel the pinch when patents run out, and generics flood the market. Apparently, so do drug stores. Rite Aid said today that same store sales fell 2% in March from a year earlier, driven by a decline in drug sales. Sales in the pharmacy, which accounts for 67.6% of overall revenue at Rite Aid, fell 4.5%, despite prescriptions rising slightly.